________ is a business strategy whereby firms attempt to gain a competitive advantage by increasing the perceived value of their products or services relative to the perceived value of other firms' products or services.
A) Product differentiation
B) Related diversification
C) Cost leadership
D) Best-cost provider

Question

Quizplus · Accepted Answer

Product differentiation is a business strategy that aims to make a company's product or service more appealing and valuable to consumers than its competitors' by emphasizing unique features, design, quality, or service. This perceived added value can justify higher prices and increase customer loyalty, leading to a competitive advantage. Related diversification refers to expanding into new business areas that complement an existing one. Cost leadership seeks to achieve a competitive advantage by offering products or services at the lowest cost possible. Best-cost provider aims to combine the benefits of both differentiation and cost leadership strategies to offer a good-quality product or service at a competitive price.

________ Is a Business Strategy Whereby Firms Attempt to Gain